NYSE$LMND

Lemonade Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Lemonade outperformed expectations in Q2 2020, demonstrating resilience amid the COVID-19 pandemic.

Lemonade reported strong Q2 2020 results, with significant growth in in force premium, customer count, and gross earned premium. The company's KPIs and financial measures exceeded expectations, driven by the ongoing trend towards digitization and the company's ability to adapt to remote work.

  • In force premium increased by 115% to $155.1 million compared to Q2 2019.
  • Customer count grew by 84% to 814,160 from the second quarter of 2019.
  • Gross earned premium increased by 121% to $35.3 million compared to the second quarter of 2019.
  • Revenue increased by 117% to $29.9 million from the second quarter of 2019.

Headline financials

Total Revenue

$29.9M

Previous: $19M+57.4%
EPS (adj)

-$1.77

Previous: -$0.71-148.2%
In-Force Premium

$155M

Previous: $63.9M+142.7%
Customers

814.2K

Previous: 442.3K+84.1%
Premium per Customer

$190.00

Previous: $162.00+17.3%
Gross Earned Premium

$35.3M

Previous: $16M+120.6%
Capital Expenditures

-$1.9M

No prior period
Free Cash Flow

-$22.9M

No prior period
Net Income

-$21M

Previous: -$23.1M+9.1%
Operating Income

$2.2M

Previous: -$13.1M+116.8%
Gross Profit

$29.9M

Previous: $13.8M+116.7%
Cash & Equivalents

$295M

No prior period
Total Assets

$400M

No prior period
Stock-Based Comp

$2.4M

No prior period

Revenue & EPS history

Lemonade · Revenue · Quarterly

$29.9M

Q2 2020+57.4%vs Q2 2019
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Forward guidance

The Company’s current expectations for the third quarter and full year 2020 are as follows:

Tailwinds

  • In force premium at September 30 of $170 - $175 million
  • Gross earned premium of $37 - $39 million
  • Revenue of $14 - $15 million
  • Adjusted EBITDA loss of $(32) - $(33) million
  • Stock-based compensation expense of approximately $3 million

Headwinds

  • In force premium at December 31 of $190 - $195 million
  • Gross earned premium of $147 - $151 million
  • Revenue of $86 - $88 million
  • Adjusted EBITDA loss of $(106) - $(109) million
  • Stock-based compensation expense of approximately $11 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+0.8%

Avg return

Earnings day

+3.7%

Avg return

5 days after

+10.5%

Avg return

30 days after

44%

11 / 25 earnings

Positive

+57.5%

Q3 2023

Best reaction

-25.2%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-13.6%-11.5%
Q4 2025-6.1%-20.6%-2.4%
Q3 2025+34.3%+34.5%+34.6%
Q1 2025+0.8%+3.6%+19.2%
Q4 2024+12.6%+18.5%+3.1%
Q3 2024+28.8%+33.6%+176.3%
Q2 2024-23.6%-26.6%-18.1%
Q1 2024+3.0%+4.1%-4.2%
Q4 2023-25.2%-20.6%-24.4%
Q3 2023+57.5%+53.1%+66.4%
Q2 2023-22.4%-26.8%-36.3%
Q1 2023+32.0%+47.8%+64.1%
Q4 2022-2.9%-0.7%-21.1%
Q3 2022+11.2%+13.7%-7.3%
Q2 2022+14.1%+27.5%-3.2%
Q1 2022-6.7%+13.7%+3.5%
Q4 2021+2.3%+5.8%+12.7%
Q3 2021-10.8%-9.3%-34.0%
Q2 2021-10.0%-7.6%-14.0%
Q1 2021-12.4%-1.9%+43.8%
Q1 2020-12.4%-1.9%+43.8%
Q4 2020-22.2%-29.8%-27.8%
Q3 2020-15.0%-1.0%+38.9%
Q2 2020-5.6%-2.0%-20.1%
Q4 2019-5.6%-2.0%-20.1%
Q3 2019
Q2 2019
Q4 2018
Q3 2018
Q2 2018

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro